Interest rates, investment, and inflation's impact on your wallet | Your Money Matters Episode 1

This segment with News On 6 anchor Dave Davis is part of our new weekly video series “Your Money Matters.” In this week's episode, Davis welcomed BOK Financial's Steve Wyett about investment, stocks, inflation, interest rates, and how the current economy is impacting the average Oklahoman's bottom line. Here are the key takeaways.

You can watch the full episode at the top of this page.

1. Stock Market Volatility Affects Retirement Savings

Many Americans have retirement funds tied to the stock market. While markets can be unpredictable, with drops of 20% or more, Wyett said he wants people to understand the importance of staying disciplined and invested for long-term gains.

“There's always things that throw us for a loop,” Wyatt said. “We've seen stocks down 20% in the past, and they will go out and make a prediction. They're going to go down 20% again at some point in the future, but that's just part of how this is going to happen. The idea, though, is that if you stay disciplined, stay invested over time, there's been very few asset classes that have outperformed stocks.”

2. Job Market Remains Strong

April’s jobs report showed 177,000 new jobs, exceeding expectations. Steady employment supports consumer spending, which helps keep the economy growing.

“We're still waiting to see some of the post-Liberation Day data come in,” Wyett said, referring to President Donald Trump’s April 2 announcement of tariffs on most goods imported to the United States. “That's what the Federal Reserve is looking for, but overall, it just shows that the economy is in solid shape. 4.2% unemployment is unbelievably low in the history of our economy.”

3. Interest Rates Likely to Stay Elevated

Mortgage and credit card interest rates are unlikely to return to pandemic-era lows. While short-term rates may drop slightly, long-term rates like mortgages will likely remain between 6 and 8%, making borrowing more expensive.

“I think those ultra-low interest rates of the mortgages at 2.5% to 3.5%, those are going to be the exception, not the rule,” Wyett said. “The only way that we would get back there is if the Fed would have to drop interest rates back to 0%.” 

Wyett went on to explain 0% interest rates hurt people who were saving for their financial future.

“I hope the Fed doesn't have to take interest rates that low because if we do, that means we've had a pretty bad economic outcome. Unemployment would be a lot higher. It would probably mean there would be other things that might be keeping us from buying our house,” Wyett explained.

4. Inflation Eases Slowly, But Prices Remain High

Prices have risen more than 20% since the pandemic, and broad declines are unlikely. Consumers may see small drops, but overall, price levels are expected to stay elevated.

“You're going to see some areas where they're going to drop, but I wouldn't look for broad price declines like cars, insurance, all of the things that we spend our money on,” said Wyett. “They're not going to get cheaper. I would say we're not going back to where we were before we went into the pandemic. What we hope over time is, wages can continue to grow.”

5. Gas Prices Are Falling, For Now

Gas prices have dipped due to increased oil production, especially in states like Oklahoma. However, taxes and distribution costs still cause regional price differences.

“I think most consumers need to understand when I say gasoline prices right now on the open market are trading at about $2 a gallon. They go, wait a minute, I'm paying way more than that at the pump. Certainly, there's some distribution costs, but let's remember that many areas tax gasoline pretty heavily,” Wyett explained.

6. Avoiding Credit Card Debt is Crucial

Credit card interest rates remain around 20%, making it costly to carry a balance. Wyett shared words of caution and explained that minimizing credit card use to avoid long-term financial strain.

“As much as you can avoid credit card debt. It’s just very expensive,” Wyett said, “I think the interest rate is somewhere around 20%, and that adds up in a hurry.”

7. Economic Outlook: Cautious Optimism

Wyett remains optimistic, noting that despite uncertainties, America’s economic resilience remains strong.

“We need some good things to happen, but we think that they will over time. Don't bet against America, Dave. That's not a good bet,” Wyett said.

Join Dave Davis each week for “Your Money Matters” and in-depth discussions about economic issues that impact you and your family.